President Trump plans to impose reciprocal tariffs on countries including India starting April 2 in response to unfair trade practices. This follows significant tariffs on imports from Canada and Mexico and increased taxes on Chinese goods, provoking retaliatory measures from these countries. Trump asserts this will lead to economic growth and job creation.
On April 2, President Donald Trump announced he would implement reciprocal tariffs against key trading partners such as India, aimed at countering what he deemed unfair trade practices. This announcement followed the introduction of a 25 percent tariff on imports from Canada and Mexico and a doubling of tariffs on Chinese goods to 20 percent. The immediate consequence of Trump’s tariffs prompted Canada and Mexico to prepare their own retaliatory measures, escalating trade tensions with the United States.
In his address, President Trump emphasized that many countries have historically imposed high tariffs on U.S. goods. He specifically stated that the European Union, Brazil, and others impose tariffs significantly higher than those imposed by the U.S. He remarked, “Other countries have used tariffs against us for decades, and now it is our turn to start using them against those other countries.”
Trump criticized India’s tariffs, asserting that they can exceed 100 percent, and noted that the average tariffs imposed by countries like China and South Korea are disproportionately high compared to U.S. tariffs. He asserted that effective April 2, the U.S. would reciprocate these tariffs, saying, “Whatever they tax us, we will tax them.”
The President further declared that the U.S. would adopt non-monetary tariff barriers if foreign nations attempted to impede American market access. He insisted that this strategy would result in substantial economic benefits, including job creation, and posited that U.S. trade practices have been unjust for decades: “We have been ripped off for decades by every country on earth, and we will not let that happen any longer.”
Additionally, last month, Trump urged an assessment of reciprocal tariffs targeting all trading partners, with preliminary investigations expected by April 1. He commenced the new tariffs shortly after midnight on Tuesday, affecting goods imported from Mexico and Canada while doubling duties on certain Chinese products.
In response to Trump’s tariffs, Canadian Prime Minister Justin Trudeau indicated that Canada would impose tariffs on more than $100 billion worth of U.S. goods over three weeks, while Mexican President Claudia Sheinbaum also announced retaliatory measures. Meanwhile, China responded by imposing tariffs of up to 15 percent on various American agricultural products and increased regulations on U.S. firms exporting to China.
President Trump’s announcement of reciprocal tariffs aims to address perceived unfair trade practices by major trading partners like India, Mexico, and Canada, escalating tensions in international trade relations. His administration has initiated retaliatory measures to protect American economic interests while encouraging job growth. However, this strategy has provoked significant counteractions from affected countries, raising concerns about a potential trade war. The implications for the U.S. economy and its international relations remain to be fully assessed.
Original Source: www.indiatoday.in
